Amazon price changes mysteriously

dub_nerd

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I went to order this from Amazon:

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Like a lot of people, I have a home address in Ireland plus a Northern Irish parcel motel address to use for items that ship free to UK addresses. This time Amazon offered me the above price of £239.99 and free delivery to either UK or Ireland. I triple checked that the offer was the same in both cases.

But when I went to check out, although the postage was shown as free, the actual item price had been sneakily hiked by £6 if I chose delivery to Ireland:
________UK:_________________________Ireland:___________________
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Anyone know what gives?​
 
Doh! Spot on!
Extra 3% VAT (Ireland 23% vs. UK 20%) would account for it alright.
It doesn't give any VAT breakdown on the online screen which makes it hard to compare, even though the VAT is shown on the email confirmation.

I tried it again and noticed a couple more things. The price in my first screenshot above is only wrong if you initially choose UK delivery and then switch address to Ireland. If you choose Ireland up front it shows £245. Seems to be a bug in the Amazon UI.

Just thinking out loud here ... so that means if I ship to Parcel Motel NI I'm getting cheaper VAT, which in this case would more than cover the Parcel Motel cost? (Didn't do it 'cos I don't want extra risk of a delivery screw-up).
Might be a moot point after we get our hard border and have to switch to amazon.de :eek:
 
Why?

Surely you must pay Irish VAT if you bring it into the Republic?

It is several years since I did this. The delivery (for Amazon's purposes) is within the UK, to Parcel Motel's address in Newtownabbey. From memory they charged UK VAT.

Parcel Motel then drive it across the border to one of their pick-up points.
 
That is not my point.

Surely, if you import it into Ireland you should pay Irish VAT?

Or am I missing something?

Brendan
 
Orders would need to be €200+ before your save anything given that Parcel Motel or AddressPal charges eat into any VAT saving. In any event, I'd prefer the VAT goes to the Irish exchequer rather than that of the UK.
 
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No, once VAT is paid within the EU there is no further VAT payable to move an item within the EU.

Thanks mathepac.

So if I buy something I should get it delivered to wherever in the EU has the lowest VAT rate?

And that is perfectly legit?

Brendan
 
Not really Brendan, VAT is paid at point of sale within the EU regardless of which country within the EU it is being shipped to.

However as Amazon have a "presence" within Ireland they apply the Irish VAT rate to item being shipped here (uniquely, I think, but open to correction).
 
No, nothing unique about it. Any company with cross border sales over a limit must do this. Selling into Ireland the limit is 35k.

https://europa.eu/youreurope/business/taxation/vat/cross-border-vat/index_en.htm#withintheeu

However, notwithstanding that, over the years I have dealt with countless online companies, usually relativity small amounts, and have yet to see a price change upon discovering my whereabouts. Maybe this has happened but I can't recall it.
Unlike Amazon (topic) who regularly do apply the Irish rate.

Bear in mind you are also paying (Irish) VAT on the ParcelMotel fee.

I don't get the point you're trying to make, obviously you pay VAT on the services from an Irish company.
 
However, notwithstanding that, over the years I have dealt with countless online companies
I would imagine a lot of small companies struggle with compliance. Just look at the posts here with vat questions, just in an Irish context. Cross border, and self charging for vat registered customers is a nightmare.
 
Got a shock just now, checked the same item again and thought I'd seen Amazon UK introduce import fees to Ireland in anticipation of Brexit. :eek::eek::eek:
Turns out I was accidentally on the US site. :D
Also saw that I could have gotten it €35 cheaper from amazon.de than I paid to UK. :oops:

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Also saw that I could have gotten it €35 cheaper from amazon.de than I paid to UK. :oops:
This is not always the case. I recently ordered an item from Amazon.co.uk. It cost GBP 63.79, which included VAT and came with free delivery . I paid for it in sterling but it should be about 73 EUR, when I get my credit card bill. I checked the same item on Amaxon.fr and it costs 79.99 EUR, and, as far as I can remember, Amazon.fr then adds VAT (and shipping ?) to your purchase. So I don't think that online shopping in the eurozone is necessarily cheaper than in the UK. And some eurozone companies, e.g. Saturn in Germany, don't ship to Ireland (or didn't when I tried to place an order).
 
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So if I buy something I should get it delivered to wherever in the EU has the lowest VAT rate?

No Brendan, shipped FROM where-ever has the lowest EU VAT rate, unless they have an arrangement with Revenue here to to charge Irish VAT. In the case of amazon.co.uk, if you have an item delivered to your Parcel Motel or AddressPal convenience address in the UK, UK VAT rates apply (-3%), delivery is *usually* free to "UK mainland" addresses (you'll see the charges on check-out before you commit to buying) and you'll pay you €3/€4 delivery on collection this end.

It's not just about saving VAT, you can also buy stuff they won't ship to Ireland. There are goods amazon will ship to Ireland but IME, delivery charges can be prohibitive compared to Parcel Motel or AddressPal.
 
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